RELATING TO CREDIT NOTE

This query is : Resolved

VEnkAta krisHna Marri (Querist)
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12 May 2020 Good Morning all,
I had a query relating to GST Credit Note.
I Purchased 1000 Cement Bags @ 200/- i.e., 1000*200 =200000 (Purchase Cost)per bag and later the supplier issued Credit Note for the Rs.15000/- for the same goods,
Now My Purchase Cost becomes Rs.200000-15000=185000 that is Rs.185/- per bag.
I Sold these at Rs.195/- per bag in Retail to Customers.
The Problem is, At the time of Purchase i will accounted as Rs.200/- per bag (1000bagsX200=200000) .
The Credit note given by the Supplier had no effect to cost of per bag ( Directly reductionn in Purchase Value and no effect in Good Value).
In My Books , the cost of Cement bag is Rs.200/- and Selling Price is Rs.195/-
But actually i'm selling for Profit for Rs.195-185 =10/- per bag.
My Question is How i need to give this credit note effect to my Stock price ?
Can anyone say the answer.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 May 2020 Give credit to purchase. Directly reduce purchase value, this will reduce stock value.

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